Aceleração inflacionária, instabilidade financeira e endividamento interno e externo
By: SCHWARTSMAN, Alexandre
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ArticlePublisher: São Paulo : Nobel, out./dez. 1992Revista de Economia Política = Brazilian Journal of Political Economy 12, 4, p. 17-26Abstract: We provide here a model that attempts to explain how the financial circuit in Brazil became an outstanding locus of wealth valuation. It shows that its special character is due to a peculiar institutional arrangement that allows the public sector the main financial agent to operate with negative spread. Then, inflationary shocks can produce very strong movements of private sector portfolio, between indexed and non-indexed bonds, which can deepen the negative spread. This is the reason why the financial circuit is a source of wealth valuation, since this negative spread is appropri-ated by the financial speculators
We provide here a model that attempts to explain how the financial circuit in Brazil became an outstanding locus of wealth valuation. It shows that its special character is due to a peculiar institutional arrangement that allows the public sector the main financial agent to operate with negative spread. Then, inflationary shocks can produce very strong movements of private sector portfolio, between indexed and non-indexed bonds, which can deepen the negative spread. This is the reason why the financial circuit is a source of wealth valuation, since this negative spread is appropri-ated by the financial speculators
Revista de Economia Política 1992
v. 12, n. 4(48)
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